Local Does as Local Is: Information Content of the Geography of Individual Investors' Common Stock Investments
利用1991至1996年折扣经纪商数据，发现个人投资者偏好本地股票，且本地投资年化收益率比非本地投资高3.2%，表明本地投资者能利用信息优势获利。
ABSTRACT Using data on the investments a large number of individual investors made through a discount broker from 1991 to 1996, we find that households exhibit a strong preference for local investments. We test whether this locality bias stems from information or from simple familiarity. The average household generates an additional annualized return of 3.2% from its local holdings relative to its nonlocal holdings, suggesting that local investors can exploit local knowledge. Excess returns to investing locally are even larger among stocks not in the S&P 500 index (firms for which information asymmetries between local and nonlocal investors may be largest).